DEVELOPMENT FINANCE FOR YOU.
Get the Financing You Deserve
When it comes to financing or refinancing your development projects, you want to make sure you have a professional and experienced Broker by your side. I guarantee my clients the best financing and mortgage services.
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WHAT IS DEVELOPMENT FINANCE
Development Finance is short-term lending that is given to Developers to build Residential and Commercial properties on Land, (Typically over a year). The developments are then sold to Companies and Individuals, and the loan is paid back.
HOW DOES IT WORK
The lender will typically lend the client up to 70% of the total cost of the Land (LTV) then often 100% of the build costs for the project. Not all lenders will offer to purchase the land AND complete the build at 100% though. This is where we source the appropriate Lenders.
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The Purchase cost + Build Costs + Fees = Total Costs.
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GDV is the Gross Development Value after the project is finished.
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GDV - Total Costs = Net Profits.
WHAT FEES ARE INVOLVED
There are a number of fees involved when "building out" a development project. They are as follows (subject to lender):
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ARRANGEMENT FEE (A number of Lenders charge this)
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BROKER FEE
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SURVEY
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SURVEYOR SITE VISITS
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INTEREST PAYMENTS
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These can vary from lender to lender, but they're important to see if a deal makes sense and will end up in profit.
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Contact me to see how I can help with your next development project.